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1inch: $12 billion in liquidity is idle in the DeFi sector, with 95% of the funds unused.

1inch: $12 billion in liquidity is idle in the DeFi sector, with 95% of the funds unused.

CointimeCointime2025/11/22 19:42
By:Cointime

report released by 1inch shows that 83%-95% of the liquidity in mainstream decentralized finance (DeFi) pools such as Uniswap and Curve is idle, with billions of dollars not generating fee income or any returns. This inefficiency particularly affects retail liquidity providers: 50% of retail investors suffer losses due to impermanent loss, with total net losses exceeding 60 million USD.

1inch proposes to solve this problem through its Aqua protocol — which allows DeFi applications to share a unified liquidity pool, aiming to optimize liquidity utilization, reduce capital fragmentation, and enhance returns for liquidity providers.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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